Business Performance for Fiscal 2012

Transcription

1 Noevir Holdings Co., Ltd. Business Performance for Fiscal 2012 (October 1, 2011 September 30, 2012) November 19, 2012 Noevir Holdings Co., Ltd. Takashi Okura, President and Representative Director Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 1

2 Company Overview Noevir Holdings Co., Ltd. Date of Establishment March 22, 2011 (Noevir Co., Ltd was founded in April 1964.) Paid-in Capital 7,319 million Stock Listing Tokyo Stock Exchange, First Section (Ticker: 4928) Line of Business Aviation business Apparel business Cosmetics Pharmaceuticals & Health Food Other Consolidated Subsidiaries 13 subsidiaries (5 domestic / 8 international) Employees 124 (Non-consolidated), 1,798 (Consolidated) As of Sep. 30, 2012 Number of shareholders 23,314 Outstanding Shares 37,442,840 (Including 58 shares of treasury stock) (As of Sep. 30, 2011: 41,322,860 shares) 3,880,000 shares repurchased and cancelled during the year Market Capitalization billion ( November 16, 1,148 ) Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 2

3 Fiscal 2012 Highlights Net sales were 4.6% less than forecast due to lower Aviation business and drink sales Profits substantially exceeded the forecast due mainly to strong-performance in mid- to high-priced cosmetics and reduced selling, general and administrative expenses resulting from low-cost operation (Millions of yen ) Year ended September 30, 2012 Forecasts (revised on April 26) Compared to forecast Target at beginning of year Compared to target at beginning of year Net sales 47,220 49,500 (4.6) % 49,500 (4.6) % Cosmetics 32,223 Pharmaceuticals & Health Food 13,595 Other 1,401 Operating income 5,150 4, % 3, % Ordinary income 5,451 4, % 3, % Income before income taxes 5,526 Net income 2,787 2, % 2, % Operating income margin 10.9 % 8.7 % +2.2pt 6.9 % +4.0pt Ordinary income margin 11.5 % 9.3 % +2.2pt 7.5 % +4.1pt Return on sales 5.9 % 4.0 % +1.9pt 4.0 % +1.9pt EPS Due to the establishment of a holding company through a sole-share transfer of Noevir Co., Ltd. on March 22, 2011, fiscal 2011 (March 22, 2011 September 30, 2011) was an irregular six-month accounting period. Because there is no previous period to serve as a basis for comparison, the year-on-year change from the corresponding period of the previous fiscal year is not included. Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 3

4 Income Statement Net sales 47,220 million yen (compared to forecast: -2,279 million yen, -4.6 %) Main Cosmetics business performed well Sales of energy drinks decreased in Pharmaceuticals & Health Food Sales of Aviation business decreased, impacted by high yen and weak demand in U.S. and European markets due to economic slowdown Cost rate 34.7% (compared to forecast: improved by 2.3 percentage points) The sales composition ratio changed due to a decline in the Aviation business Promoted cost reductions Selling, general and administrative expenses 25,697 million yen (compared to forecast: -1,202 million yen, -4.5 %) SG& A expenses reduced by 2.3 billion yen (-8.2 %) from the target at beginning of year through low-cost operation Fixed costs reduced by consolidating and streamlining overlapping administrative work among Group companies More efficient sales promotion in the business of high-end cosmetic products sold through individual consultation Operating income 5,150 million yen (compared to forecast: +850 million yen, %) Increased by 1.75 billion yen compared to target at beginning of year Operating income margin 10.9 %. Already achieved the 10% target for year ending September 30, 2014 Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 4

5 Segment results Cosmetics Net sales: 32,223 million yen; Segment income: 5,591 million yen Sales composition ratio 68.2% High-end cosmetic products sold through individual consultation performed well Provided services for customers in Noevir Beauty Studios High-end skincare products such as Noevir speciale line and Noevir BIOSIGN eye serum performed well Strong demand for new products including beauty serum and carbonated foam masks Self-selection cosmetics performed well thanks to strong sales of major brand products Sana Nameraka Honpo: Performed well with release of new product versions in Brightening skincare line NOV: Increased sales with new products and stronger marketing to medical institutions Sana Excel: Increased thanks to release of new product versions Sana Keana Putty Shokunin: BB Cream becomes a hit because products saves consumers time Noevir speciale skincare line Sana Nameraka Honpo Brightening skincare line Noevir BIOSIGN eye serum NOV Ⅲ AC skincare line Expanded sales of self-selection cosmetics in mainland China and Hong Kong Sana Excel makeup line Sana Keana Putty Shokunin BB cream Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 5

6 Segment results Pharmaceuticals & Health Food Net sales: 13,595 million yen; Segment income: 1,245 million yen Sales composition ratio 28.8% Nutritional supplements set to remain strong The Noevir brand Noevir Resveratrol nutritional supplement drove results Nutritional supplements and drinks to enhance beauty in Deposit Sales (household delivery route) performed well Noevir Resveratrol nutritional supplement Decline in energy drink sales Deposit Sales (household delivery route) declined for energy drinks Purutsuya Bijin drinks Enhanced summer promotion for Min Min Da Ha and Kyo Kyo Da Ha functional drinks, featuring the popular singing group 'NMB48' Recorded double-digit in net sales growth during the London Olympic games Tokiwa Oishii Aogiru drinks Factors for improving profitability Reduced production costs and SG & A expenses Improved rate of return in Deposit Sales (drug business distribution) Improved direct sales ratio in Deposit Sales (household delivery) Min Min Da Ha functional drinks a popular singing group Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 6

7 Segment results Other Net sales: 1,401 million yen; Segment income: 70 million yen Sales composition ratio 3.0% Aviation business Aviation business impacted by high yen and weak demand in U.S. and European markets due to economic slowdown Apparel business Apparel and Intimate Apparel sales were lower than the previous year Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 7

8 Balance Sheets As of Sept. 30, 2012 As of Sept. 30, 2011 (Millions of yen) Change Current assets 60,466 61,755 (1,289) Cash and cash equivalents 38, ,674 (421) Notes and accounts receivable 11,754 10,579 +1,174 Inventories 7,200 7,949 (749) Non-current assets 23,234 25,671 (2,436) Property, plant and equipment 19,675 20,784 (1,108) Buildings and structures, net 5,005 5,666 (660) Land 13,642 13,881 (239) Intangible assets (558 ) Software (559) Investments and other assets 3,131 3,900 (769) Investment securities (17) Deferred tax assets 1,796 2,368 (571) Total assets 83,701 87,427 (3,726) Current liabilities 11,753 11,938 (185) Reserve for product returns 691 1,033 (341) Long-term liabilities 22,257 23,893 (1,635) Guarantee deposits received 17, ,446 (1,087) Total liabilities 34,011 35,832 (1,820) Shareholders equity 50,175 52,073 (1,898) Common stock 7,319 7,319 - Additional paid-in capital 3,484 6,809 ( 3,325) 5 Retained earnings 39,372 37,944 1,427 Total net assets 49,689 51,595 (1,905) 6 Total liabilities and net assets 83,701 87,427 (3,726) Balance Sheets Current assets Non-current assets Total liabilities and net assets General statement (1) Cash and cash equivalents: 38.2 billion yen 20.8 billion yen excluding guarantee deposits received of 17.3 billion yen (2) Inventories: -749 million yen (3) Buildings and structures, net: -660 million yen (4) Land: -239 million yen (5) Additional paid-in capital: billion yen due to repurchase and cancellation of treasury stock* (6) Equity ratio: 59.3% (Year ended Sep. 30, 2011: 59.0%) Net cash increased Assets streamlined Debt-free management Reference: *For acquisition and cancellation of treasury stock Off-auction own share repurchase trading system (ToSTNeT 3) of the Tokyo Stock Exchange On Nov. 17, 2011, 3,880,000 treasury stock acquired (3,325 million yen) On Nov. 28, 2011, all repurchased shares were cancelled Outstanding shares reduced from 41,322,860 to 37,442,840 Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 8

9 Capital Expenditures/Depreciation/Cash Flows Capital Expenditures /Depreciation (Millions of yen) Year ended September 30, 2012 Capital expenditures 234 Depreciation 1,702 Cash Flows (Millions of yen) Year ended September 30, 2012 Cash flows from operating activities 4,228 Cash flows from investing activities 585 Cash flows from financing activities (4,813) Cash and cash equivalents, end of year 36,253 Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 9

10 Strategies for Fiscal 2013 & Forecasts Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 10

11 Medium-Term Management Plan and Forecast Fiscal 2015 Targets: Net sales 50.0 billion yen; Operating income margin 14%; Overseas sales ratio 10% (Millions of yen) Fiscal Results Fiscal 2013 Forecasts Fiscal 2014 Targets Fiscal 2015 Targets Net sales 47,220 48,000 49,000 50,000 Operating income 5,150 6,000 6,400 7,000 Ordinary income 5,451 6,200 6,600 7,200 Net income 2,787 3,700 3,900 4,300 Operating income margin Overseas sales ratio 10.9% 12.5% 13.1% 14.0% 10.0% EPS Theme Five policies Generation of profit in Japan and expansion in Asian markets 1. Pursue innovation and continuous profit generation in Japan 2. Enhance our brand value in Asia 3. Diversify and globalize human resources and our corporate structure 4. Strengthen our manufacturing competitiveness 5. Lower operational costs Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 11

12 Fiscal 2013 Forecasts Net Sales Operating Income Ordinary Income Net Income EPS Millions of yen Millions of yen Millions of yen Millions of yen Yen Half Year 23,300 2,600 2,700 1, Full Year (A) 48,000 6,000 6,200 3, Fiscal 2012 Results (B) Change (A-B) Change (%) 47,220 5,150 5,451 2, % % % % Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 12

13 Strategies for Fiscal 2013 (Cosmetics) Counseling Based on the strong prestige lines, we will introduce a series of new major products to increase profits As of September 2012, there were 1,247 Noevir Beauty Studios, well above our initial target of 1,000 studios To generate continuous profits in Japan, we will further enhance the sales support system for authorized salons, and promote services to customers Self-selection Continue enhancing the core brands. Concerning the Nameraka Honpo skincare line, fully upgrade the flagship Moisturizing line, and develop an advertising promotion Release an aging care series to further increase the number of customers Noevir BIOSIGN Night smoothy 50g 18,000 (January 5, 2013 release) Noevir Beauty Studios Sana Nameraka Honpo a popular singer Expand stores and brands in Asian countries, while developing new fields in the domestic market Sana Nameraka Honpo Wrinkle gel cream 100g 1,575 Sana Nameraka Honpo Wrinkle eye cream 25g 1,050 August 7, 2012 release Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 13

14 Strategies for Fiscal 2013 (Pharmaceuticals & Health Food / Other) Pharmaceuticals & Health Food Securing steady profitability, while actively developing new brands and entering new fields Market the new brand BEAUPOWER. Available in major convenience stores and drugstores since October, 2013 Developed an advertising campaign featuring the entertainer, Jun Komori BEAUPOWER Develop an advertising campaign for Nanten Nodo Ame cough drops for the high-demand winter season A new sales office of Deposit Sales (household delivery) opened to improve direct sales Other Nanten Nodo Ame cough drop a popular singer Continued cautious handling of the Aviation business, while monitoring demand and business trends in Europe and the United States Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 14

15 Inquiries Noevir Holdings Co., Ltd. Public & Investor Relations Tel: Fax: E mail:ir@noevirholdings.co.jp WEB: These materials contain information that constitutes forward looking statements. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ from those in the forward looking statements as a result of various factors including changes in material circumstances. Copyright (C) 2012 Noevir Holdings Co., Ltd All Rights Reserved. 15